African Rainbow Minerals (ARI) H1 2026 earnings summary

Executive summary

• Headline earnings for the six months ended 31 December 2025 increased by 10% to R1,669 million, with basic earnings up 69% to R2,353 million, driven by higher PGM prices and strategic asset transactions.

• Interim dividend declared at R5.00 per share, maintaining commitment to shareholder returns despite market headwinds.

• Net cash position improved to R8,464 million at 31 December 2025, up from R6.6 billion a year earlier.

• Safety performance improved significantly, with zero fatalities and lower LTIFR and TRIFR rates.

• Major strategic actions included the closure of Cato Ridge, disposal of Sakura Ferroalloys, and acquisition of full ownership of Nkomati Mine.

Financial highlights

• Revenue for the period was R7,857 million, with gross profit of R2,620 million and EBITDA of R4,503 million.

• Cash generated from operations was R1,700 million, a turnaround from an outflow in the prior period.

• Capital expenditure totaled R2,277 million, with significant investments in Bokoni, Modikwa, and Two Rivers mines.

• Headline earnings per share rose to 866 cents, and basic earnings per share to 1,220 cents.

• Segmental headline earnings: ARM Platinum swung to R704 million profit, ARM Ferrous declined 34% to R1,236 million, ARM Coal posted a R271 million loss.

Outlook and guidance

• Positive earnings outlook driven by improved PGM prices, operational recovery, and cost control, but iron ore and manganese markets face near-term price pressure.

• Capital expenditure guidance for FY2026 increased by R446 million, mainly due to higher waste stripping at Modikwa.

• Sustaining capital for FY2027 and FY2028 expected at R3.5 billion per annum, including R850 million for iron ore operations.

• Two Rivers Merensky project restart and Bokoni feasibility study under review, with investment decisions expected in the next reporting cycle.

• Surge Copper’s Berg Project pre-feasibility study on track for 2026 completion.